Pre-retirement tips

What are your retirement goals? The concept of retirement means different things to different people. Whether it is the opportunity to travel, spend time with family, to start a new project, or to dabble in a mixture of all of the above, retirement is a time to enjoy and hopefully be free of financial stress. It can be a major life transition and we need to be honest about what our goals are and what trade-offs we are willing to live with. Even if retirement seems a while away, it is good to have a plan. Here are some tips to help you plan for retirement:

1. Start saving early and consistently as every little bit helps. Compound interest adds up over time, so the sooner you start the better.

2. Estimate your future needs and calculate your potential retirement expenses, try the MySuper Planner designed specifically for the Scheme or try Sorted’s Retirement calculator to calculate what your retirement income could look.

3. Diversification of the Scheme means your investments are not stored in one ‘basket’ and are not impacted by the performance of one company.

4. Depending on the category that you are in, some members can make additional contributions to the Scheme if they can afford to.

5. The cost of living is a big topic now so factor in inflation and how this might impact your long term retirement income. Some members choose to keep their savings in the Scheme even after leaving employment.

6. Consider possible large expenses and health care treatments you may need after you retire.

7. Regularly review and adjust your retirement plan as needed, and think about finances and insurance at least annually. Key calendar dates are a good reminder, such as start of a new year or if your income changes.